Determinants of Pension Benefit Sustainability: Governance, Regulation, and Investment Practices in Zimbabwe’s Private Occupational Pension Schemes

Abstract

This study examines the factors influencing the enhancement of pension benefits in private occupational pension schemes in Zimbabwe, focusing on fund management practices and regulatory frameworks. Using a descriptive survey design, primary data were collected through questionnaires and interviews from eleven pension funds, representing over 40% of the target population, alongside key personnel from the Insurance and Pensions Commission (IPEC). Secondary data from reports and industry publications were also analyzed. Findings indicate that weak governance, limited trustee expertise, absence of risk management departments, high employer contribution arrears, currency instability, and an unfavorable investment climate undermine pension payouts and expose retirees to financial vulnerability. The study highlights opportunities for improvement through professional trustee training, enterprise risk management adoption, offshore and voluntary investments, and strengthened regulatory enforcement. Coordinated reforms by government, trustees, regulators, and fund managers can enhance pension fund performance, improve retirement security, and contribute to national economic development.